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Cumorah CU shuttered by state regulator

LAS VEGAS (10/27/09)--Nevada state regulators closed Las Vegas-based Cumorah CU Friday night and announced that Rantoul, Ill.-based Credit Union 1 will assume Cumorah's deposits and assets. Cumorah is the third credit union in Las Vegas to fail this year and the first privately insured Nevada credit union to be closed since the nation's financial crisis began (Las Vegas Review Journal Oct. 24). American Share Insurance, a private share insurance company based in Ohio, is the liquidating agent. Credit Union 1 CEO Paul Simons was appointed interim CEO before the announcement was made that the $574 million asset Credit Union 1 would take over the deposits and assets. He said Cumorah's problems began with delinquencies in its commercial real estate loans. Cumorah, with $147 million in assets and $129 million in deposits, has 60 employees, two offices in Las Vegas and two in Henderson (Las Vegas Sun Oct. 23). According to the Nevada Financial Institutions Division, the credit union had inadequate capital and mounting loan losses. In the past 18 months, former CEO Tony Mook said the credit union had laid off 42 of its 101 employees to cut expenses. He resigned Oct. 5 after 19 years as CEO. Members can conduct transactions as usual, with their deposits insured up to $250,000, said the regulator. Other Nevada credit unions to fail this year include Community One FCU, Las Vegas, which was assumed by America First CU, Ogden, Utah, on Aug. 12, and Clearstar Financial CU, Reno, which went to United CU, Mexico, Mo. Three banks also have failed since the year began. In all, nine financial institutions in Nevada have failed since July 2008. Cumorah served 15,000 members of The Church of Jesus Christ of Latter-day Saints. It was established in 1965.